Medicare J&J Drug Decision Risks Deterring Cheaper Versions (1)

The US government’s initial approach to negotiating drug prices could discourage cheaper copies of some of the more complex pharmaceuticals that eat up a high portion of total Medicare spending, drug policy analysts said.

The White House on Tuesday morning released the names of the first 10 drugs selected by the Medicare agency for price negotiations, marking a historic step to lower drug costs by dealing directly with drugmakers for the first time.

Johnson & Johnson‘s biologic Stelara, used to treat Crohn’s disease and other autoimmune disorders, was on the list, surprising some analysts. That in part was ...